II. THE U.S. ENVIRONMENTAL PROTECTION INDUSTRY AND

JOBSCREATIONINTHEENVIRONMENTALINDUSTRYINMICHIGANANDTHEUNITEDSTATESPreparedfortheBuildingDiagnosticsResearchInstituteChevyChase,Maryland:PaulaDiPerna,212-688-0042RogerBezdek,703-620-4120July2004iiTABLEOFCONTENTSLISTOFTABLESivLISTOFFIGURESivEXECUTIVESUMMARYvI.INTRODUCTION1II.THEU.S.ENVIRONMENTALPROTECTIONINDUSTRYANDRELATEDJOBS3II.A.EmergenceoftheEnvironmentalProtectionIndustry3II.B.EnvironmentalProtectionasaRecessionProofIndustry5II.C.TheCurrentSizeandStructureoftheIndustry6II.D.ProspectsfortheFuture7III.DEFININGANDESTIMATINGENVIRONMENTALJOBS10III.A.WhatConstitutesanEnvironmentalJob?10III.B.TheTypesofJobsCreatedintheEnvironmentalIndustry12III.C.TheJobsDistributioninTypicalEnvironmentalCompanies15IV.THEMICHIGANECONOMYIN200319V.THEENVIRONMENTALINDUSTRYANDJOBSINMICHIGAN22V.A.SummaryoftheEnvironmentalIndustryandJobsinMichigan22V.B.EnvironmentalJobsinMichiganbyIndustrialSector22V.C.EnvironmentalJobsinMichiganbyOccupationandSkill25V.D.Jobs,TheAutomotiveIndustryandEnvironmentalInnovation30V.E.TheEnvironmentalIndustryasanEconomicDriverforMichigan31iiTABLEOFCONTENTS(Continued)VI.SUMMARYPROFILESOFSELECTEDMICHIGANENVIRONMENTALCOMPANIES34VI.A.AmericanEnergyExchange,Inc.34VI.B.AppliedScience&Technology,Inc.36VI.C.Atwell-Hicks36VI.D.ClaytonGroupServices,Inc.38VI.E.EnerexL.L.C.38VI.F.EnergyConversionDevices39VI.G.Hubbell,Roth&Clark,Inc.40VI.H.Limno-Tech,Inc.40VI.I.MalcolmPirnie41VI.J.QuantumComplianceSystems42VI.K.TetraTech,Inc.43VI.L.Wade-Trim45VI.M.WestonSolutionsofMichigan,Inc.46VII.OPPORTUNITIESINMICHIGANSTATEGOVERNMENTPROGRAMSFORENCOURAGINGENVIRONMENT-RELATEDJOBS47VII.A.MichiganManufacturingSummit47VII.B.Governor'sInitiatives47VII.B.1.CleanMichiganInitiative47VII.B.2.TheCleanMichiganFund48VII.C.StateCommissions:TheEnvironmentalScienceBoard48VII.D.MichiganRetiredEngineerTechnicalAssistanceProgram48VII.E.MichiganEnergyOffice49VI.F.DepartmentofEnvironmentalQuality50VII.G.DepartmentofLaborandEconomicGrowth51VII.H.MichiganBiomassEnergyProgram51VII.I.MichiganEconomicGrowthAuthority52VII.J.SmartZones52VII.K.MichiganRenewablesEnergyProgram53VII.L.NextEnergy53VII.M.MichiganStrategicFund55iiiTABLEOFCONTENTS(Continued)VIII.SUMMARYOFMAJORFINDINGS56BIBLIOGRAPHY60APPENDIX:U.S.COMMERCEDEPARTMENTESTIMATESOFTHEENVIRONMENTALINDUSTRYINMICHIGAN67BUILDINGDIAGNOSTICSRESEARCHINSTITUTE,INC.72MANAGEMENTINFORMATIONSERVICES,INC.72THEJOBSANDENVIRONMENTINITIATIVE72ABOUTTHEAUTHORS73ivLISTOFTABLES1.EnvironmentalProtectionExpendituresandJobsintheU.S.Economy,1970-202032.TypicalEmployeeProfileofa100-personEnvironmentalRemediationServicesCompany,2003173.TypicalEmployeeProfileofa250-personWindTurbineManufacturingCompany,2003184.EarningsbyIndustryofEmploymentinMichiganandtheU.S.in2003215.JobsinMichiganin2003,byIndustry,IncludingEnvironmentalEmployment236.EnvironmentalJobsGeneratedinMichiganin2003,bySelectedOccupations267.SummaryoftheSelectMichiganEnvironmentalCompaniesProfiled35A.1.U.S.DepartmentofCommerceEstimatesoftheU.S.andMichiganEnvironmentalIndustries,199968A.2.U.S.DepartmentofCommerceEstimatesoftheMichiganEnvironmentalIndustrybyMetropolitanStatisticalAreas,199969A.3.PollutionAbatementCostsandExpendituresEstimatesforMichiganandtheU.S.FromtheCensusMA200Survey,199970LISTOFFIGURES1.TheEnvironmentalJobSpectrum132.SelectedU.S.JobsCreatedin2003byEnvironmentalExpenditures14vEXECUTIVESUMMARYObjectiveoftheReportTheobjectiveofthisreportistoexamineanddescribetheenvironmentalindustryanditsjobsimpactandjobscreationpotentialinthestateofMichigan,andtoprovidenationalcontextontheU.S.environmentalindustryasawhole.Therelationshipbetweenjobsandtheenvironmentisimportanttoexamine,inviewofthesizeoftheenvironmentalindustryandbecausethejobsimpactofenvironmentalmanagementhasbeenattimescontroversial.Thereportaimstoexaminethe“trade-off”betweenjobsandenvironmentalprotectionandhighlightspecificexamplesofhowtheenvironmentalindustryinMichiganandnationallyhashad,andcouldhave,jobsbenefits.Therefore,thisreport:•AssessesthecurrentsizeoftheenvironmentalindustryandrelatedjobsintheU.S.andtheprospectsforthefuture•Analyzestheconceptanddefinitionofan“environmentaljob”•EstimatesthesizeandtheindustrialsectorcompositionoftheenvironmentalindustryinMichiganin2003•EstimatesthejobscreatedinMichiganin2003byenvironmentalprotectionandtheirimportancetothestateeconomy•Estimatestheoccupationandskilllevelsofthesejobs•IdentifiesasampleoftypicalenvironmentalcompaniesinMichigan,theproductsandservicestheyprovide,theirgeographiclocation,andthen